FTSE lifted by commodities while takeover approach boosts IWG

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* FTSE 100 index up 0.1 pct

* Miners and oil majors cement gains

* IWG soars after takeover approach

By Helen Reid

PARIS, Dec 27 (Reuters) - A rally in mining and energy stocks drove Britain’s FTSE 100 higher on Wednesday after a two-day holiday, while mid-cap trading was lit up by a 28 percent jump for IWG after the serviced office provider confirmed a takeover approach.

Investors cheered the news that IWG had received an all-cash approach from Canadian private equity firm Onex and Brookfield Asset Management.

The approach marks the latest venture by a foreign acquirer into British mid-caps, with deal prices having dropped because of the pound’s depreciation.

A profit warning that prompted a 7 percent share price tumble in October made IWG all the more attractively priced for a potential suitor. The stock was down 18 percent for the year at Friday’s close.

Miners Glencore, Rio Tinto, Anglo American and BHP Billiton delivered the biggest boost to the blue-chip index, rising by 1.4 to 1.8 percent as metals prices hovered near the 3-1/2 year highs they hit on a strong Chinese growth outlook.

Mid-cap miners Acacia Mining and Hochschild also made strong gains.

Gold producers Fresnillo and Randgold Resources were the top FTSE gainers, lifted by a rise in gold prices as the dollar softened.

Tullow Oil gained 2.1 percent as oil prices stayed high, fresh from a rally that sent U.S. West Texas Intermediate crude above $60 for the first time since mid-2015.

Royal Dutch Shell gained 0.8 percent, boosted by the higher crude prices and the oil major’s assertion that the recently enacted U.S. tax reform would have a favourable impact on operations.

Shell became the latest in a string of European companies to forecast a beneficial impact from the U.S. tax overhaul, which includes a cut to the corporate tax rate to 21 percent from 35 percent.

Barclays shares rose 0.4 percent despite the bank saying it expects to take a writedown of about 1 billion pounds ($1.34 billion) on its annual post-tax profit as a result of the tax reform. ($1 = 0.7458 pounds)